Elrond is a protocol based on blockchain that aims to provide faster transaction speeds. The network has a native token, namely, EGLD, which can be used to pay network fees and reward the validators. The current market price of EGLD is $176.03, with an increase of 6.66% in 24-hour.
Founded by Beniamin and Lucian Mincu in 2017, Elrond aims to solve the problems of blockchain scalability. Elrond indeed is a platform for decentralized and enterprise use. The feature that makes it a unique platform is its high scalability. It is the first network to implement the network, state, and transaction sharding.
Our financial system is still not complementing our internet era because people still need to wait for few days to process the transactions or pay hefty processing fees. By adopting blockchain as a layer for a financial settlement, users benefit from cheaper and faster financial services. Blockchain technology needs to meet few essential criteria to be adopted globally for the economy. Firstly, it should be capable of operating on an internet-scale. Second, it should be accessible across the globe, and it should offer the most straightforward user experience.
Now, the Elrond network is aimed to build the backbone for a transparent financial system that is decentralized and accessible to everyone. It is able to process thousands of transactions per second with a transaction cost of nearly $0.001.
What makes Elrond unique is that to fulfill its goal of achieving a new internet economy, it runs on 2,169 validator nodes. The nodes are split into four shards, in which three are execution shards, and one is coordination shards. One execution shard can undergo 5,400 transactions each second. The network uses the Proof-of-Stake consensus algorithm, where nodes should stake EGLD tokens for participation in the validation process. Here, every validator is assigned a score depending upon the past activity. When the rating score of validators is relatively low, they will need to pay fines. They can also be removed to maintain the integrity of the network.
The Elrond Network offers a relatively more straightforward digital solution by completely automating the processes. By the use of Blockchain technology, the network aims to reimagine the banking system.